Financial Statements of Acquired Businesses: A Snapshot

August 2020


This guide provides a high-level summary of the SEC’s financial statement requirements for significant business acquisitions and is based on the SEC’s latest rule amendments that become effective on January 1, 2021, but may be voluntarily applied earlier.


When evaluating the financial reporting ramifications for an acquisition, companies should begin by answering the two following questions:
  • Is the company acquiring a “business,” as defined by Regulation S-X?
  • What is the significance of the acquired business to the registrant?
The answers to these questions will ultimately drive the financial statements to be filed in Form 8-K and any subsequently filed registration statements.